BREAKING: House votes on GOP tax reform bill

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After weeks and weeks of debate, and closing arguments Tuesday, the U.S. House of Representatives voted Tuesday afternoon on the final version of the new tax reform bill.

The House PASSED the bill, with 227 votes for the bill and 203 against.

Democrats continued to protest the bill up to the very end, insisting only the wealthy will benefit from the deal, while Republicans have insisted it will hugely impact the middle class.

Fox News provided the following summary of the benefits of the bill.

  • The corporate tax rate is lowered from 35 to 21 percent.
  • The bill retains the seven tax brackets, but lowers tax rates for five brackets. The new tax rates are: 12, 22, 24, 32, 35 and 37.
  • The 37 percent rate applies to individuals whose income exceeds $500,000, or joint filers whose income exceeds $600,000.
  • Beginning in 2019, the health insurance individual mandate is eliminated.
  • The child tax credit is $2,000 for each qualifying child under 17 years old, and applies to single filers and married couples. It is refundable up to $1,400.
  • The 40 percent estate tax is not gone, but the exemption levels are now doubled.
  • The alternative minimum tax rate (AMT) is eliminated for corporations, but retained for individuals. The exemption is raised to $500,000 for single filers and $1 millin for couples.
  • On state and local tax deductions, families may deduct up to $10,000 in local property, state and local income taxes.
  • Mortgage interest rate deduction will apply for new homebuyers, up to $750,000 – down from $1 million.
  • Pass-through entities, such as sole proprietorships, joint ventures, limited liability companies and S corporations are not taxed as corporations, but are counted in the owner’s personal tax returns.
  • The current deductions for student loan interest are retained, and tuition waivers received by graduate students will remain tax free.

The senate is scheduled to vote on the bill as well Monday night, and Republicans say they have enough votes to pass it there as well. It will then be taken to President Trump for his signature.

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